VIRGINIA BEACH AND NORFOLK, VA. — AH Realty Trust (NYSE: AHRT), a Virginia Beach-based real estate investment trust (REIT) that changed its name from Armada Hoffler two weeks ago, has agreed to sell 11 of its 14 apartment properties to Norfolk-based Harbor Group International LLC for $562 million in an all-cash transaction. The deal marks an effort by AH Realty to pivot away from the multifamily sector.
Harbor Group has provided a $15 million nonrefundable deposit for the transaction, which the companies say is not contingent on financing. The portfolio sale is expected to close in mid‑2026, subject to customary closing conditions.
“HGI is acquiring a strong, stable portfolio that has served our company well,” says Shawn Tibbetts, chairman, president and CEO of AH Realty Trust. “By realizing the value of these assets, AH Realty Trust is able to simplify our business, strengthen our balance sheet and continue executing our strategy with clarity and purpose.”
According to multiple media outlets, including the Baltimore Business Journal, the assets in the portfolio include:
- Chandler Residences in Roswell, Ga.
- Greenside Apartments in Charlotte, N.C.
- Chronicle Mill Apartments in Belmont, N.C.
- 1405 Point St. in Baltimore
- 1305 Dock St. in Baltimore
- Allied Harbor Point in Baltimore
- Liberty Apartments in Newport News, Va.
- The Edison in Richmond, Va.
- Encore in Virginia Beach
- Premier in Virginia Beach
- The Cosmopolitan in Virginia Beach
AH Realty Trust will retain Smith’s Landing, a five-story, 284-unit property in Blacksburg, Va. The firm will also keep The Everly and Solis Gainesville in Gainesville, Ga., with the intention to market and sell the apartment communities in the near future.
In addition to the portfolio sale, AH Realty Trust is in advanced negotiations to sell two real estate properties for approximately $63 million in proceeds. Further details of this disposition were not released.
Moving forward, AH Realty Trust will focus on managing and owning office and retail space, according to Tibbetts. The firm is selling off its construction and development divisions to employees as part of the company’s relaunch. Tibbetts said in a 2025 earnings call last month that the company will continue to operate as a publicly traded REIT.
Additionally, the REIT is relocating its offices at Armada Hoffler Tower within the REIT’s Virginia Beach Town Center development to a nearby space on Columbus Street.
AH Realty Trust’s stock price closed on Monday, March 16 at $5.63 per share, down from $7.65 a year ago, a 26.4 percent decline.
— John Nelson